Diebold upgraded to Buy at DA Davidson on valuation, material margin improvement

As previously reported, DA Davidson upgraded Diebold to Buy from Neutral with a price target of $29, up from $25. The company maintains a healthy backlog with inbound orders and demand while seeing material improvements in Product gross margins and healthy OpEx control, and its Services margins are likely to move higher looking ahead, the analyst tells investors in a research note. Valuation on Diebold is also extremely undemanding with shares presently selling at just 3.7-times on enterprise value to expected 2024 EBITDA basis, the firm added.